Private money lenders in Arizona are often referred to as hard money lenders. They are non-institutional lenders that issue short-term loans for the purchase and or renovation of an investment property. They are right for numerous types of borrowers.

Historically, fix and flippers used private money lenders in Arizona more than other borrowers. Due to the short turn around of Arizona FIX AND FLIP LOANs, private lenders generally funded these types of projects. However, private money lenders in Arizona are also useful for other borrowers.

  1. Long-term investors who don’t qualify for a conventional mortgage. These investors can use a private money loan and refinance once they meet the strict qualifications of banks.
  2. Fix and Flippers who are looking to purchase, rehab and sell the property quickly—ideally, within one year.
  3. Investors who need financing quickly—private money lenders generally fund within two weeks.
  4. Airbnb investors who can’t qualify for a conventional loan.


Private money lenders rates and terms can vary. Typically, the maximum loan amount is up to 90% LTV and up to 80% ARV. You can be approved for 100% financing—but, generally the down payment is up to 10%+ of LTV and up to 20%+ of ARV. Interest rates can vary widely—usually they are between 7% and 15%; and lender fees are around 1.5-10 points. The interest on a private money loan is assessed as interest-only—the borrower pays monthly interest payments throughout the loan term and makes a full repayment at the end of the loan. Depending on the lender there can be prepayment penalties— but most lenders do not impose these penalties.

The typical loan term is between one and three years; however, they can be as short as six months and as long as five years. Private money lenders can give you approval in as little as five minutes and funding usually occurs within two weeks. Credit scores are not as important because the loan is backed by the property. Because private money lenders do not adhere to conventional bank loan requirements they are generally very flexible in their lending terms.

What are the important qualifications in a private money lender in Arizona?

Look for a lender who has experience—the more deals they have done, the better. This information is usually found on their website. Private money lenders often specialize in specific areas of real estate and it will serve a borrower best if they use a lender that specializes in the type of property they are seeking financing. As stated earlier, private money lender rates vary. Find a lender with the lowest rates and easiest terms for your situation. There are plenty of lenders that do not impose prepayment penalties—make sure the lender you choose doesn’t have those penalties. The bottom line is there are different lenders for different borrowers—find the lender that works best for your specific purchase.

fix and flip airzona
fix and flip Arizona

Mark Gowlovech
Setabay LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel:  (602) 437-1357

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